23rd Feb 2009 07:00
AIM: EMED 23 February 2009
INITIAL MINERAL RESOURCE FOR BIELY VRCH GOLD DEPOSIT, SLOVAKIA
EMED Mining Public Limited ("EMED Mining" or "the Company") is pleased to announce an initial Mineral Resource for the Company's 100%-owned Biely Vrch gold deposit of 41.7 million tonnes at 0.79g/t gold, containing 1.1 million ounces of gold.
Harry Anagnostaras-Adams, Managing Director of EMED Mining, commented:
"This initial JORC Code compliant Mineral Resource estimate provides confirmation of the Company's preliminary estimates. Biely Vrch was discovered by EMED Mining and it is very pleasing that a deposit containing 1.1 million ounces of gold has been delineated by our team.
"With our discovery cost to date of under $5 per ounce, with gold prices now in the order of US$1,000 per ounce and a strong outlook for further increases in the gold price, Biely Vrch and our surrounding 100%-owned licences in Slovakia are becoming very valuable properties. We have developed a very cost-effective approach to exploration within EMED Mining. And we will, over the next six months, consider how best to optimize the development potential of these properties for shareholders."
The Biely Vrch porphyry gold deposit is located within the Company's Detva Licence in central Slovakia and is hosted in a quartz-veinlet stockwork zone associated with an andesitic porphyry intrusion.
The initial Mineral Resource estimate for Biely Vrch is tabulated below and approximately 62% of the resource is in the oxide zone, with the remainder in the primary zone.
|
Resource Catagory |
Tonnes (Millions) |
Gold Grade (g/t) |
Contained Gold (ounces) |
|
Oxide (cut-off grade = 0.22g/t gold) |
|||
|
Indicated |
12.6 |
0.85 |
345,000 |
|
Inferred |
13.1 |
0.77 |
322,000 |
|
Total |
25.7 |
0.81 |
667,000 |
|
Primary (cut-off grade = 0.34g/t gold) |
|||
|
Indicated |
5.1 |
0.71 |
116,000 |
|
Inferred |
10.9 |
0.78 |
274,000 |
|
Total |
16.0 |
0.76 |
390,000 |
|
Oxide + Primary |
|||
|
Indicated |
17.7 |
0.81 |
461,000 |
|
Inferred |
24.0 |
0.77 |
596,000 |
|
Grand Total |
41.7 |
0.79 |
1,057,000 |
The above resource estimate is based on:
Data from 34 diamond drillholes totaling 10.6 km of drilling (refer Appendix C);
Nominal drillhole spacing of 100m by 100m; and
Ordinary Kriging geostatistical resource estimation technique.
The Mineral Resource measures approximately 350m north-south and 300m east-west and extends from surface to a depth of 250m. Mineralisation continues below this depth.
The key parameters for estimating the cut-off grades of 0.22g/t gold for the oxide resource and 0.34g/t gold for primary resource are:
gold price of USD$700/ounce;
5 million tonne per annum open-pit, heap-leach operation;
Costs derived using benchmark assumptions based on comparable mineralisation, mines, and processing methodology; and
Metallurgical recoveries of 80% for the oxide resource and 60% for the primary resource.
The Mineral Resource was limited to a potentially economic open-pit based on benchmark cost estimates and a gold price of US$1,100/ounce. The resultant strip ratio is approximately 1.0:1.0, ie - one tonne of waste rock is mined for one tonne of resource.
Metallurgical recoveries and geotechnical ground conditions are key drivers in determining the resource estimate. Further work is planned to be undertaken in order to better define the metallurgical response of the Biely Vrch mineralisation and to collect more geotechnical information.
Other Targets for Porphyry Gold Mineralisation in this Prolific District
Exploration is progressing at other promising prospects within the Company's large (1,107km2), 100%-owned licences in central Slovakia. This is conducted by the Company's exploration team based in Central Slovakia and includes mapping, geochemistry and scout drilling.
It is has been demonstrated that the Biely Vrch deposit is one of a cluster of mineral deposits untested with modern techniques in this historically prolific district. Historical mining occurred for over 800 years and the precious metals yielded by historical mining methods from the Company's current licence holdings exceeded 120 million ounces of silver and 2.5 million ounces of gold.
More than 20 prospects have been identified within the Company's licences and exploration activities will this year be carried out at the four higher priority prospects. Historical exploration and recent fieldwork by EMED Mining indicate that these four prospects have excellent potential for large porphyry copper-gold deposits. All exploration work is carried out by the Company's own Slovakia-based personnel, including drilling with the Company's own drill rig.
Social Licence
A core value of EMED Mining is to invest in a socially and environmentally responsible manner, with a view to creating social benefits via collaborative partnerships. A matter of equal importance to the assessment of the technical merits of our projects in Slovakia is the degree of social licence gained.
EMED Mining personnel have built-up strong relationships with the Slovak government, local communities, business chambers, scientific societies and other stakeholders that are based on integrity, transparency and progress. These stakeholders have been very supportive of the responsible development of metal production operations in Slovakia. The Government is supportive and, notably for Central Europe where the gold industry has confronted some unusual activist opposition, in 2007 legislated to permit the use of conventional industrial-cyanidation techniques for metallurgical gold-recovery processes, subject to community support and proper controls in accordance with normal international standards.
The Company carries out open dialogue with stakeholders to ensure that its exploration and potentially its mining and metal production activities are undertaken in appropriate locations and in an appropriate manner.
Enquiries
|
EMED Mining |
Fox-Davies Capital |
RFC Corporate Finance |
Bishopsgate Communications |
|
Harry Anagnostaras-Adams |
Daniel Fox-Davies |
Stuart Laing |
Nick Rome |
|
+357 9945 7843 |
+44 (0)207 936 5230 |
+618 9480 2500 |
+44 (0)207 562 3350 |
|
www.emed-mining.com |
|||
|
www.emed.tv |
-Ends-
APPENDIX A
Mineral Resource Statement for the Biely Vrch Gold Deposit, Slovakia
The Biely Vrch Mineral Resource estimate tabulated below is in accordance with the widely accepted international reporting standard, the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia, December 2004 ("JORC Code").
Mineral Resource for the Biely Vrch Gold Deposit
|
Tonnes (millions) |
Gold (g/t) |
Contained Metal (ounces) |
|
|
Indicated Resource |
17.7 |
0.81 |
461,000 |
|
Inferred Resource |
24.0 |
0.77 |
596,000 |
|
Total Mineral Resource |
41.7 |
0.79 |
1,057,000 |
Mineral Resources for the Biely Vrch deposit have been estimated at a breakeven gold cut-off grade (based on a US$700 per ounce gold price) of 0.22g/t gold for the oxide material and 0.34g/t gold for the primary material. The Mineral Resources are contained within a volume defined by a preliminary pit optimisation using a long-term gold price of US$1,100 per ounce, which represents the current spot gold price with a margin to reflect reasonable upside.
For the Biely Vrch Mineral Resource estimate:
EMED Mining has provided geostatistical analysis, block model construction and Mineral Resource confidence classification in accordance with the JORC Code; and
AMC Consultants (UK) Limited have estimated preliminary costs for the Biely Vrch Deposit, determined the breakeven cut-off grade and developed the preliminary pit-optimisation shell.
All work undertaken by AMC has been under the direction of EMED Mining.
Competent Person
Information in this announcement that relates to Mineral Resource estimates and exploration results is based on information compiled by Mr Ron Cunneen, BSc (Hons.) Geology. Mr. Cunneen is Head of Exploration for EMED Mining and a full-time consultant to that company. He is a Member of The Australian Institute of Geoscientists. Mr. Cunneen has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities he is undertaking to qualify as Competent Persons as defined in the JORC Code. Mr. Cunneen consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
APPENDIX B
Geological Maps showing spatial relationship
Please see link to pdf of EMED Geoligical Maps
http://www.rns-pdf.londonstockexchange.com/rns/7001N_-2009-2-22.pdf
APPENDIX C
Drilling Assays from Biely Vrch
|
Hole Number |
Easting |
Northing |
RL |
Dip |
Azimuth |
Depth |
From |
To |
Length |
Au |
|
|
(m) |
(m) |
(m) |
(m) |
(g/t) |
|||||||
|
DVE1 |
380,039 |
5,379,851 |
420 |
60 |
95 |
108.2 |
0.0 |
108.2 |
108.2 |
1.26 |
|
|
DVE2 |
380,007 |
5,379,617 |
429 |
60 |
95 |
102.8 |
0.0 |
102.8 |
102.8 |
0.16 |
|
|
DVE3 |
380,036 |
5,379,798 |
434 |
60 |
99 |
220.0 |
0.0 |
220.0 |
220.0 |
0.49 |
|
|
DVE4 |
380,136 |
5,379,828 |
423 |
60 |
272 |
252.0 |
0.0 |
252.0 |
252.0 |
1.21 |
|
|
DVE5 |
380,297 |
5,379,877 |
405 |
55 |
275 |
559.0 |
228.0 |
559.0 |
331.0 |
1.05 |
|
|
DVE7 |
379,886 |
5,379,847 |
404 |
70 |
279 |
568.0 |
0.0 |
59.0 |
59.0 |
0.21 |
|
|
DVE8 |
380,013 |
5,379,856 |
420 |
70 |
275 |
262.5 |
0.0 |
154.0 |
154.0 |
1.34 |
|
|
DVE9 |
380,154 |
5,379,944 |
401 |
50 |
275 |
350.0 |
62.0 |
103.0 |
41.0 |
0.68 |
|
|
DVE10 |
379,942 |
5,379,698 |
431 |
70 |
275 |
368.3 |
25.0 |
33.0 |
9.0 |
0.83 |
|
|
DVE11 |
379,942 |
5,379,703 |
429 |
60 |
98 |
400.4 |
0.0 |
400.4 |
400.4 |
1.25 |
|
|
DVE12 |
380,047 |
5,379,694 |
451 |
60 |
93 |
400.0 |
0.0 |
400.0 |
400.0 |
0.55 |
|
|
DVE13 |
380,247 |
5,379,945 |
404 |
60 |
278 |
400.0 |
206.0 |
400.0 |
196.0 |
0.50 |
|
|
DVE14 |
380,103 |
5,379,792 |
426 |
60 |
99 |
300.0 |
0.0 |
213.0 |
213.0 |
0.67 |
|
|
DVE15 |
380,031 |
5,379,947 |
401 |
60 |
278 |
300.2 |
42.0 |
94.0 |
52.0 |
0.51 |
|
|
DVE16 |
379,935 |
5,379,587 |
407 |
60 |
92 |
272.5 |
0.0 |
272.5 |
272.5 |
0.10 |
|
|
DVE17 |
380,059 |
5,379,598 |
431 |
60 |
90 |
406.0 |
372.0 |
400.0 |
28.0 |
0.54 |
|
|
DVE27 |
380,092 |
5,379,803 |
433 |
60 |
270 |
460.0 |
0.0 |
460.0 |
460.0 |
1.14 |
|
|
DVE28 |
380,057 |
5,379,905 |
409 |
60 |
270 |
252.3 |
0.0 |
252.3 |
252.3 |
0.35 |
|
|
DVE29 |
380,051 |
5,379,801 |
435 |
60 |
90 |
251.4 |
0.0 |
251.4 |
251.4 |
0.76 |
|
|
DVE30 |
380,058 |
5,379,905 |
410 |
60 |
90 |
293.2 |
0.0 |
293.2 |
293.2 |
0.52 |
|
|
DVE31 |
380,005 |
5,379,796 |
431 |
60 |
90 |
444.7 |
0.0 |
444.7 |
444.7 |
0.78 |
|
|
DVE32 |
379,958 |
5,379,906 |
404 |
60 |
90 |
350.3 |
0.0 |
350.3 |
350.3 |
0.44 |
|
|
DVE33 |
379,902 |
5,379,809 |
412 |
60 |
90 |
Abandoned |
|||||
|
DVE34 |
380,160 |
5,379,906 |
403 |
60 |
90 |
98.2 |
0.0 |
98.2 |
98.2 |
0.08 |
|
|
DVE35 |
380,155 |
5,379,709 |
444 |
60 |
90 |
143.0 |
0.0 |
143.0 |
143.0 |
0.29 |
|
|
DVE36 |
380,157 |
5,379,905 |
403 |
60 |
270 |
458.1 |
0.0 |
458.1 |
458.1 |
0.46 |
|
|
DVE37 |
380,154 |
5,379,708 |
444 |
60 |
270 |
471.5 |
0.0 |
471.5 |
471.5 |
1.14 |
|
|
DVE38 |
380,103 |
5,379,708 |
450 |
50 |
180 |
164.7 |
0.0 |
164.7 |
164.7 |
0.49 |
|
|
DVE39 |
380,053 |
5,379,700 |
451 |
60 |
270 |
254.2 |
0.0 |
254.2 |
254.2 |
0.89 |
|
|
DVE40 |
380,008 |
5,379,698 |
446 |
60 |
180 |
140.0 |
0.0 |
140.0 |
140.0 |
0.51 |
|
|
DVE41 |
379,895 |
5,379,811 |
412 |
60 |
90 |
461.4 |
0.0 |
461.4 |
461.4 |
1.21 |
|
|
DVE42 |
380,008 |
5,379,796 |
432 |
60 |
270 |
275.3 |
0.0 |
275.3 |
275.3 |
0.72 |
|
|
DVE43 |
380,049 |
5,379,748 |
446 |
60 |
90 |
433.8 |
0.0 |
433.8 |
433.8 |
0.49 |
|
|
DVE44 |
380,049 |
5,379,747 |
446 |
60 |
270 |
323.1 |
0.0 |
323.1 |
323.1 |
0.99 |
|
Note: Drillholes DVE18 to DVE26 are not included in the above table as these holes are located to the east and southeast of the known Biely Vrch deposit.
Sampling and Assaying Procedures
All drilling on the Biely Vrch Prospects has been done with PQ (85.0mm diameter), HQ (63.5mm diameter) and NQ (47.6mm diameter) size core samples. Core recovery has averaged 95% throughout the mineralised zones. All core has been logged and separated into 1.0m lengths. PQ size core has been quartered, while HQ and NQ sized core have then been cut in half by a diamond saw. The split core has then been sent for assay.
Sample preparation has been done by ALS - Chemex in Romania and assayed for gold by 30gm fire assay (method Au-AA25). Both standards and blanks have been used in the sample batches sent by EMED Mining to ALS - Chemex in line with EMED Mining company quality control procedures.
APPENDIX D
Notes to Editors: about EMED Mining Public Limited
EMED Mining was admitted to trading on AIM in May 2005. The Company is based in Cyprus and has a strong commitment to responsible development of metal production operations in Europe, with an initial focus on copper and gold.
The Group's region of interest are the tectonic belts spanning across Europe and over to the Middle East. The strategy is to evaluate exploration and development opportunities in several jurisdictions throughout this quality mineral belt and to promote sustainable development practices through the implementation of European Union and other leading-edge international standards. The Company strictly implements its Environmental & Community Policies which includes:
Integrating environmental management into our business, planning and reporting processes.
Promoting a strong environmental ethic throughout the Company and the community.
Complying with, as a minimum, all applicable local and European Union laws and regulations.
Communicating with community stakeholders in a responsible and transparent manner.
EMED Mining has now established a strong position in the following selected zones:
Exploration areas in Slovakia are centred on a cluster of volcanic centres. Low-detection geochemical methods are being applied to these areas for the first time together with open-pit bulk mining concepts. The principal targeted mineralisation style is low-grade, bulk-mineable porphyry gold. The Company has announced a significant gold discovery at Biely Vrch and the identification of many targets with apparently similar geological characteristics in its wholly-owned exploration licenses in Central Slovakia.
The mines in Cyprus and in Spain in the Iberian Pyrite Belt are probably among the best known in the world for their copper mineral endowment. EMED Mining's goal is to restart copper production at its projects in both of these well-endowed, historical mining districts. Both Spain and Cyprus are progressive members of the European Union and EMED Mining has been made to feel welcome in both host countries. The styles of mineral deposits and production techniques are similar in both mining districts.
Exploration areas in Turkey were vended into 32%-owned KEFI Minerals Plc which was admitted to AIM in December 2006. KEFI Minerals owns carefully selected licence areas in Turkey, as well as an extensive proprietary database of regional and specific exploration data providing a pipeline of further projects to evaluate. It recently announced a joint venture at the Artvin Project with Centerra Gold Inc of Canada and is considering other opportunities in the region. See www.kefi-minerals.com.
For further information on the Company's activities, visit www.emed-mining.com or www.emed.tv.
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